Buy-to-let mortgage rates?

ecclesto

My house is valued £175,000 with no mortgage. I am looking to buy a house for £130,000. I will be getting £750 pcm rental for my own house and my salary is £18,000 per year.

It seems to me that my greatest outlay is the arrangement fee and am of the opinion that it is better just to get a buy-to-let mortgage for the whole £130,000 on an interest only mortgage rather than a btl and a residential mortgage. I would rather just have the one mortgage on a term and when that runs out only have to have one arrangement fee.

Will I be able to borrow £130,000 on the £175,000 and are there any really good deals out there at the moment?

Senior_Paper_Monitor

Tax relief on interest component of BTL ?

Possible to get this passed on residential property, BUT loan has to be specifically for the purpose of BTL and not always easy to prove to satisfaction of HMRC.

Also your propoed LTV is getting periously close to 75% (above whcih the interest rates available climb rapidly - better rates the lower your LTV).

People tend to get 'wrapped up' with the shock of arrangement fees on BTL (I'm not paying XXk to any b*gger for an f in mortgage !! Repeat in Victor Meldrew mode) - look at the whole pictire.